Standard machine hour per gallon
.12
hour/gallon
.12 hour/gallon
Standard labor hour per machine hour
1.25 labor hr/mach.hr
1.25 labor hr/mach.hr
Actual sales volume
420,000 gallons
268,200 gallons
Number of hourly employees
29
21
Supervisors (one per each eight hourly
employees)
4
3
Raw material prices
Cans
40¢ each
40¢ each
Pigment
$2.75 per pound
$3.75 per pound
Raw material usage
Cans
one per gallon
one per
gallon
Pigment
two pounds per gallon
two pounds per gallon
Direct labor rate
$8.25 per hour
$8.25 per hour
2006 PROJECTED SALES INFORMATION
The sales department feels very good about the prospects for 2006.
The reputation of the new product, Stupendous Paint, has increased
significantly due to effective adverting in the past few years. The
sales department is ready to launch a major advertising campaign
which is expected to result in the trend of the last three year to
continue for the Stupendous brand even with a small price increase
per gallon.
Super Paint has been produced since the company began production.
The sales level of this product has been rather stagnant for the last 5
years, and that trend is expected to continue in the future.